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Author's profile photo Suman Poddar

SAP HCM in Cloud

As we know that Cloud is coming, this also applicable for SAP HCM application. Cloud computing is basically changing the way SAP & Partners build the applications, the way customers use them, and how SAP system interact with entire world. This is the time we should have idea about cloud computing and Software as a Service (SaaS). Solution should be expanding from the on-premise world to the on-demand world.

Basics of Cloud Computing

Cloud computing is Internet-based computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid. Cloud computing is a natural evolution of the widespread adoption of virtualization, Service-oriented architecture and utility computing. Details are abstracted from consumers, who no longer have need for expertise in, or control over, the technology infrastructure “in the cloud” that supports them. Cloud computing describes a new supplement, consumption, and delivery model for IT services based on the Internet, and it typically involves over-the-Internet provision of dynamically scalable and often virtualized resources. It is a by-product and consequence of the ease-of-access to remote computing sites provided by the Internet. Typical cloud computing providers deliver common business applications online that are accessed from another Web service or software like a Web browser, while the software and data are stored on servers.

In SAP, Cloud Computing has 3 layers

        Cloud as Infrastructure:  

Right now most of the SAP systems work on traditional hosting.  But the future is to move on to cloud and operate it there, regardless of whether they are using internal, private cloud technology, such as a virtualized data center, or external, public cloud technology hosted by a third party. This will extend the operation of public cloud infrastructure


        Cloud as software as a service:

Software as a Service layer, will enable to develop on-demand applications which are seamlessly integrated with SAP on-premise applications so that they share master data or business processes that go across both on-demand and on-premise solutions. Software as a Service will supply hybrid solution with some on-premise and on-demand components.


        Cloud as Consumption:

This is the layer for increasing the use of SAP system from any systems. This is the concept for developing non-SAP application to interact with SAP via standard protocols.


Future of SAP HCM implementation

In current SAP HCM implementation methodology, these are the steps

–          Client ask implementation partners to implements SAP HCM

–          Implementation team assembled in onsite and spend few weeks for As-is study and blueprinting

–          As the client is expert on their business process, we ask them to describe their processes in detail

–          Then client received the system according to their need

In future we would have all the best practice processes with a pre-configured way in SAP using SaaS. And during Gap-Analysis implementation team will ask client why they are not running best practice processes. So we have a nearly 80 %( let say) configured systems with best practice processes. So customization and realisation time will be less than the current scenario.

So the Positive sides of this methodology are-

–          It will reduce implementation time and cost considerably.

–          Best Practice will be encouraged

–          Will deliver near-immediate payback

–          Will increase ROI and decrease overall TCO

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      Author's profile photo Former Member
      Former Member
      Hi Suman,
      Many thanks for your very informative article. I wondered how long you think it will be before cloud computing is applicable to the SAP HCM applications and the way HCM implementations are undertaken ?
      It sounds like there could be many benefits associated to a move over to cloud.

      Nicola McDonnell

      Author's profile photo Suman Poddar
      Suman Poddar
      Blog Post Author
      May be it's still in a conceptual stage..But it will possibly encourage the Best Practice in Industry/Domain..Implementation/Solution will be more scalable..I think some of the company also started SaaS fronted development for Web and Mobile, because in coming years SAP fronted have to be available from Web and Mobile
      Author's profile photo Former Member
      Former Member
      Hi Suman
      I think you're right, SAP will definitely need to make its business applications available via the web and mobile.
      SAP has created a mobile business unit last year to support on premise/on demand/on device strategy and does seem to be focusing on developing mobile business applications which is great news.